Mexico faces mild stagflation in 2026 amid trade worries

The economy of Mexico is projected to remain in a state of mild stagflation throughout 2026, hindered by ongoing uncertainty regarding trade relations with the United States and Canada. According to a Reuters poll of economists, Latin America's second-largest economy is set for its third consecutive year of growth below 2%, while inflation remains near the upper limit of the central bank's target range. This represents the most prolonged period of such economic conditions for the country since the 2001-2003 era.